Commercial Shorts - Record High - 470,000 contracts (1,460 m tons)

[joe_momma]

Total commercial shorts for gold - 470,000 contracts - roughly 1, 400 tons of Au.

http://www.zerohedge.com/article/eur-shorts-return-commercial-gold-net-short-positions-hit-all-time-record

Somebody's gonna get pinched in a short squeeze when paper gold disconnects from physical.....

[JohnQPublic]

A little short covering going on right now. :)

[JohnQPublic]

Followed by the normal Monday take-down. :(

I think "volatility" is the keyword for today.

[gunDriller]

http://www.kitco.com/images/live/gold.gif

DMac said today would be a good day to buy in his thread on the options calendar.

2 $10 downticks, 2 1% downticks, how ever you want to look at it.


anyway, the 470K short contracts for Gold - that means people are offering to sell Gold - and the BUYER has the right to demand physical ?

of if they're offering to sell gold - but don't deliver physical - then the short contract seems like a credit derivative.

[joe_momma]

anyway, the 470K short contracts for Gold - that means people are offering to sell Gold - and the BUYER has the right to demand physical ?

of if they're offering to sell gold - but don't deliver physical - then the short contract seems like a credit derivative.


COMEX changed their rules - the contract seller can decide to settle with ETF or cash instead of the required physical.

[gunDriller]

COMEX changed their rules - the contract seller can decide to settle with ETF or cash instead of the required physical.


doesn't that make the whole thing a farce, or, even more of a farce ?

if a buyer like APMex or a jeweler or solar panel manufacturer, someone who buys the contract because they need physical - it seems logical they would take their business to another exchange, because Comex by definition can't deliver what they need.